E.l.f. Beauty raises outlook after Q2 sales rise

E.l.f. Beauty, the owner of E.l.f. Cosmetics and Keys Soulcare, has reported a 33% increase in sales to £108.7 million ($122.3 million) for the second quarter ending 30 September 2022.

This growth was primarily driven by price increases, cost savings and product mix, partially offset by inventory adjustments and higher transportation costs.

For Q2, E.l.f. Beauty shared the following results:

• Gross margin was up 190 basis points to 65%.
• Adjusted net income was £17.8 million ($20.1 million).
• Adjusted EBITDA was up 47% to £24.2 million ($27.3 million).

For H1, E.l.f. Beauty shared the following results:

• Net sales up 30% to £127 million ($245 million).
• Gross margin up 290 basis points to 66%.
• Adjusted EBITDA was £52.3 million ($58.9 million).
• Adjusted net income was £36.6 million ($41.2 million).

The group has updated its FY23 guidance, now expecting a 22-24% increase in sales to £425-432 million ($478-486 million), compared to £398-405 million ($448-456 million) previously.

Tarang Amin, E.l.f. Beauty's Chairman and CEO, said: “I am proud of the E.l.f. Beauty team for delivering our 15th consecutive quarter of net sales growth, with Q2 up 33%. We believe our value proposition, innovation engine, and ability to attract and engage consumers will continue to fuel our growth.”